#2 Authorize acquisition & demolition of 176 Lincoln (File Res. #2010-733)
NEIGHBORHOOD SERVICES MEMORANDUM
September 20, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Demolition of Property at 176 Lincoln Street
(File Resolution 2010-733)
Summary
Five hundred Thousand ($500,000) dollars were included within the 2009 Note
Issue for neighborhood and downtown property acquisitions. Funding for
neighborhoods was included to acquire vacant and/or blighted properties in the
central city residential neighborhoods and the downtown area.
The property located at 176 Lincoln Street is a vacant 2 unit rental property
located at the corner of Lincoln and West Van Buren. This property is located
within Census Tract 3, the Historic Fourth Ward. The property was foreclosed on
in February of 2010 and is currently owned by Federal National Mortgage
Association in Plano, Texas. The interior of the structure is in very poor condition
and staff recommends demolition of the property after acquisition.
An offer to purchase the property has been negotiated in the amount of $24,000,
subject to City Council approval. The property would then be demolished at an
estimated cost of $18,000. The site would be restored as green space for the
time being and offered to a not for profit for construction of a new single family
home or offered for sale to adjoining property owners. Any new construction
would be reviewed by staff for compatible neighborhood design and all future
sales transactions would return to council for approval.
Department Recommendation
Neighborhood Services Staff is recommending that the City acquire the
residential property located at 176 Lincoln Street under the Neighborhood and
Downtown Blight Elimination Program for the purpose of blight elimination and
neighborhood stabilization.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move to approve File Resolution #2010-733 authorizing the purchase and
demolition of real property located at 176 Lincoln Street for the purpose of blight
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elimination and neighborhood stabilization as consistent with the City of
Janesville Comprehensive Plan and Look West and Old Fourth Ward
Neighborhood Revitalization Plan.
Background
The property located at 176 Lincoln Street is a vacant 2 unit rental property
located at the corner of Lincoln Street and West Van Buren Street. This property
is located within Census Tract 3, Historic Fourth Ward. The property was
foreclosed on in February of 2010 and is currently owned by Federal National
Mortgage Association. The interior of the property is in poor condition and staff
recommends that the residence be demolished.
The property is zoned R3, General Residence District. The property is listed in
th
fair condition on the 4 Ward and Look West Housing Condition Report based on
a exterior inspection of the property from the street. Upon an interior inspection
with a real estate agent, a significant roof leak was noted that has contributed to
mold and fungus growth throughout the structure. The property is currently in a
blighted condition.
The subject property includes a 2 unit home was built in approximately 1900. The
lot is 66 feet wide by 125 feet deep, totaling .189 acres. There is a 2,191 square
foot, 2 story, 2 unit home located on a visible corner lot and a 252 square foot
detached garage in poor condition. Staff is recommending that the structure be
demolished upon acquisition due to the poor interior and exterior condition of the
building. The estimated cost for demolition is $18,000. Any salvageable materials
will be offered to Habitat for Humanity.
The City has negotiated a purchase price of $24,000, subject to approval of the
Plan Commission and City Council. The property has an assessed value of
$75,200.
The site would be restored as green space for the time being and offered to a not
for profit for construction of a new single family home or offered for sale to
adjoining property owners. Any new construction would be reviewed by staff for
compatible neighborhood design and all future sales transactions would return to
council for approval
Funding for the acquisition and demolition of this property is proposed to be
funded through the 2009 note issue funding. The 2009 note issue included
$500,000 in funding for vacant and/or blighted projects. Funding is proposed in
recognition of the major neighborhood planning effort underway and the
insufficient funds that are available under the Community Development Block
Grant (CDBG) Program. This would be the fifth property funded under the 2009
note issue funding. (Other properties funded include: 404-406 Johnson St., 907
McKinley, and 1110 Hamilton St and 321 E Court Street.)
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Analysis
The proposed property acquisition is consistent with established City plans as
described below:
The project is consistent with the City of Janesville Comprehensive Plan, which
calls for the revitalization of neighborhoods that have experienced decline. The
structure is not historically or architecturally significant and based on its poor
physical condition does not represent a critical use in the Fourth Ward
Neighborhood. Removal of this structure would provide an opportunity to
enhance the appearance of this block and offer potential redevelopment
opportunities consistent with the character of traditional downtown neighborhood
development.
The project is consistent with The Look West and Old Fourth Ward
Neighborhood Revitalization Plan, which has been guiding redevelopment efforts
in the central city neighborhoods.
Our recent experience indicates that many residential properties are being
bought throughout Janesville and are being used as rental properties with no
improvements or minimal improvement being made to the properties. Janesville
does not currently have a shortage of affordable housing (we are hearing of a
15% vacancy rate); although it is arguable that we are experiencing a shortage of
quality affordable housing.
Plan Commission Action
There was a motion by Zolidis with a second by Perrotto to forward the proposed
acquisition to the City Council with a favorable recommendation noting that the
Plan Commission has not reviewed the financial aspects of this transaction. The
motion carried on a 5-0 vote.
Attachments: Property Data Information
Site Map
Property Photos
cc: Eric Levitt, City Manager
Jay Winzenz, Assistant City Manager and Director of Administration
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RESOLUTION NO. 2010-733
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL
PROPERTY LOCATED AT 176 LINCOLN STREET
WHEREAS
, Wis. Stats. §§ 62.22 (1), 62.23 (17)(a), 62.23 (17)(b), 66.0101, 62.11(5),
Chapter 32, and other pertinent Wisconsin Statutes permit the City’s acquisition,
development, ownership, protection, improvement, conservation, public use, demolition,
disposition, and other disposal of parkland, open space, riverfront properties, blighted
properties, redevelopment, and development properties; and
WHEREAS,
the City Council authorized $500,000 to be used for blight elimination in the
central city in a 2009 General Fund Note Issue ; and
WHEREAS
, the Community Development Authority (CDA) and the Neighborhood
Action Team assisted in formulating criteria for potential Neighborhood Services
Department Property Acquisition projects, including: location in area of greatest need;
located within either of the two redevelopment sites as identified in the City of Janesville
Look West & Old Fourth Ward Neighborhood Revitalization Plan (Adopted December
th
8, 2008); properties located along collector, major arterial streets, or minor arterial
streets; properties located near schools or parks; properties identified as poor or fair
th
condition on the 4 Ward and Look West Housing Condition Report (or of similar
condition for census tracts 6 &10); and
WHEREAS
, the City of Janesville Administration has negotiated an offer to purchase
176 Lincoln Street in the amount of Twenty Four Thousand dollars ($24,000.00); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
September 20, 2010 and found it to be consistent with long range City plans, but not
commenting upon the financial aspects of the transaction; and
WHEREAS
, the Council find this acquisition and proposed public use(s) in the best
interest of the City and of benefit to the public; and
WHEREAS
, the funding source for the acquisition and demolition is the 2009 General
Fund Note Issue Blight Elimination Fund:
NOW, THEREFORE, BE IT RESOLVED
by the Common Council of the City of
Janesville that the City’s acquisition of 176 Lincoln Street in the amount of Twenty Four
Thousand dollars ($24,000.00) for the above described public purpose(s) is hereby
approved and authorized; the City Manager and/or his designee(s) may acquire and
close upon the City’s purchase of the Property from the owner(s) on behalf of the City;
and
BE IT FURTHER RESOLVED
, that the City Manager and/or his designee(s), on behalf
of the City of Janesville, is/are hereby authorized and empowered to negotiate, draft,
modify, review, execute, and enter into additional agreements, record, file, and/or make
minor modifications and/or amendments to any and all documents, papers, forms, and
agreements, and to take whatever other actions as the City Manager may determine,
from time to time and at any time, necessary and/or desirable to effectuate the intent of
this resolution and/or the public good.
ADOPTED: Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Development Specialist
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